January 10, 2025

Casten, Underwood Reintroduce Legislation to Provide Tax Relief for Families Hurt by SALT Deduction Cap

Washington, D.C.  – Representatives Sean Casten (IL-06) and Lauren Underwood (IL-14) introduced legislation to provide tax relief to Illinois families unfairly hurt by changes to the State and Local Tax (SALT) deduction. The Republican tax law enacted in 2017 under the first Trump Administration disproportionately harmed northern Illinoisans by capping the SALT deduction at $10,000, preventing taxpayers from deducting the full amount of their state and local taxes, which include property taxes, on their federal tax returns.

The SALT Fairness for Working Families Act would help save taxpayers money by increasing the SALT deduction cap to $15,000 and eliminating the marriage penalty.

“For as long as we've had a tax code, the SALT Deduction has existed to acknowledge the principle that Americans shouldn't have to pay taxes twice,” said Congressman Casten. “We must provide tax relief to Illinois families unfairly harmed by the Republican Tax Plan of 2017, which our bill seeks to rectify by raising the current SALT deduction cap and eliminating the marriage penalty.”

“Tax reform should put working families first, but capping the SALT deduction did the opposite,” said Underwood. “Under the first Trump Administration, the 2017 Republican tax law gave wealthy corporations a tax break by making working families pay more. The SALT Fairness for Working Families Act will restore the SALT deduction and lower the tax burden for middle-income families in Illinois and across the country.”

The SALT Fairness for Working Families Act was first introduced in 2019 and would allow individual filers to deduct up to $15,000 for state and local tax payments. Jointly filing married couples would be allowed to deduct up to $30,000 for state and local tax payments. 

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